June 6, 2023

After several attempts, the bulls finally pushed the price above the 100-day SMA. However, Ethereum is still struggling to break above the major resistance area in the $1,700-$1,800 range.

technical analysis

technical analysis Grizzly

daily chart

Support and resistance levels have emerged on the charts on the daily time frame using the Fibonacci Retracement tool, extending from the all-time high to the last realized bottom recorded in June at $880.

As can be seen, the bulls quickly broke the first resistance level, the 0.236 Fibonacci level (blue) near $1,300. However, it appears that the 0.382 Fib level (yellow) has acted as an immediate hurdle for the bulls. Historically, this level has played an important role: ETH prices stayed below this level for three weeks during a 2021 rally.

Looking ahead to the next short term, there are two possible scenarios:

First, ETH broke and closed above the $1,800 mark and aimed for the next important level near $1,900 to $2,000. There, it will turn into a bull trap – a long liquidation and a pullback to retest the key $1,300 level.

In the second case, ETH breaks above $1,800 and crosses the horizontal resistance at $2,160 (white) and moves towards the red descending line that overlaps the 0.618 Fibonacci level (green). There, ETH is expected to be rejected on the first try. In this case, with the 200-day EMA reclaimed, we can safely say that the bulls have regained control of the market.

Key Support Levels: $1500 and $1350

key resistance level: $1800 & $2160

Daily moving average:

MA20: $1614
MA50: $1349
MA100: $1656
MA200: $2280


As expected, against Bitcoin, the bulls were able to pull the price down to the downside resistance (yellow).

As the RSI indicator witnesses a bearish divergence (in red), expect the bulls to stay near this area.

From below, it should be noted that the bulls must defend the 0.07 BTC horizontal level, while the bears have the potential to dominate the market by forming lower lows. If the 0.07 BTC level breaks, expect ETH to extend to the next support at 0.065 BTC (green).

Key Support Levels: 0.07 & 0.065 Bitcoin

Key Resistance Levels: 0.075 & 0.08 Bitcoin

On-chain analysis

Switch network flow: Definition: The difference between coins flowing into and out of an exchange. Inflow – Outflow = Net flow.

A positive value indicates that reserves are increasing.

From a technical standpoint, the price has reached a solid resistance level, so investors are currently skeptical and cautious about Ethereum. Furthermore, this resulted in not much change in the metrics. If this resistance is broken, Ethereum will exit the exchange and the histogram will turn red.

Special Offer (Sponsored)

Binance Free $100 (Exclusive): Use this link to sign up and get $100 for free and a 10% fee discount for your first month on Binance Futures (Terms).

PrimeXBT Special Offer: Use this link to sign up and enter code POTATO50 to get a deposit of up to $7,000.

Disclaimer: The information found on CryptoPotato is that of the cited author. It does not represent an opinion of CryptoPotato as to whether to buy, sell or hold any investment. It is recommended that you do your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for details.

Cryptocurrency Charts Via transaction view.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *